News - Real Estate

6 July, 2011 Real Estate

Signs of recovery for Dubai property market

After undergoing a slump, real estate market in Dubai shows signs of improvement. Dubai hospitality and retail sectors have performed well, according to a report by the world's leading property investment and advisory firm Jones Lang LaSalle. The latest report of Jones Lang LaSalle ‘Dubai Real Estate Market Overview-Q2 2011' has covered residential, office, retail and hospitality sector. The retail mall sector performed well with no new supply in the market expected till 2014. Rents are expected to stay at AED 1,885 per sq m in the coming months. Hospitality sector which bottomed out in Q1, has registered an occupancy rate of 81 percent in Q2. Jones Lang LaSalle, Head of Research, Craig Plumb said: "Considering all real estate sectors in Dubai, performance was mixed this quarter, with some sectors - such as hospitality and retail - on the way to recovery, while others continue to decline. With GDP forecasts at 5% for 2011, Dubai's economy is already recovering and general market confidence remains buoyant, which is illustrated by the oversubscription of Dubai government's new US$ 500 million bond issue." Dubai office market stablised in Q2, but could see decline with the entry of new stock. Another 600,000 sq m of new space will be available by the end of this year. In residential sector, villa rents went up by 4 percent and apartment rents came down 1 percent.